Johnson v. Ford Motor Company
Published: Jan. 19, 2002 | Result Date: Dec. 17, 2001 | Filing Date: Jan. 1, 1900 |Case number: 6470769 Verdict – $10,017,800
Judge
Court
Fresno Superior
Attorneys
Plaintiff
William M. Krieg
(Kemnitzer Barron & Krieg LLP)
Defendant
Facts
In February 1998, the plaintiffs purchased a used 1997 Ford Taurus from Decker Ford in Fresno. At the time of
the purchase, the plaintiffs requested a mechanical history of the vehicle but were told by Decker Ford that the
car did not have a repair history. In fact, the car had numerous transmission problems, including a transmission
replacement. The original owner had demanded that the defendant Ford buy the car back as a "lemon" at
10,000 miles. After determining that the car was not a lemon, Ford offered the original owner an Owner
Appreciation Certificate worth $1,500 provided that the car was traded in against the purchase of a new Ford.
The original owner did this. Decker Ford then placed the car on its lot for resale.
Following their purchase of the vehicle, the plaintiffs had numerous transmission problems, including two
complete replacements. Ford refused to replace or repurchase the vehicle. The plaintiffs filed suit in March
2000.
The lawsuit alleged that Ford violated CaliforniaÆs lemon law by engaging in a practice of
lemon laundering, taking back defective vehicles from complaining customers and then reselling
them without disclosing the condition or history to the next buyer.
Settlement Discussions
The plaintiffs demanded $1 million. The defendant offered $50,000 plus attorney fees. The co-defendant Decker Ford of Fresno settled at mediation before trial for $100,000.
Other Information
The jury found for the plaintiffs on each of the three causes of action for fraud, violation of the lemon law and of the ConsumersÆ Legal Remedies Act. The jury awarded $17,811 by way of compensatory damages and $10 million punitive damages.
Deliberation
two days
Poll
12-0 (on causes of action for violation of Consumer Warranty Act and Consumer Legal Remedies Act), 9-3 (for fraud and punitive damages)
Length
three weeks
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